Importance The study deals with the possibility to apply budgeting at enterprises involved in innovation-based ventures, emphasizes major problems that are typical of the budgeting process, and defines requirements to the budgeting system of innovation-based entities. It will help focus on the financial aspect of innovation in terms of its financial results and innovation cost planning. Objectives The objective of the study is to improve financial planning at enterprises implementing innovation projects, and determine key requirements to their budgeting system. Methods The theoretical and methodological framework rests on the works of foreign and national specialists on the nature, methodological principles and functions of financial planning and budgeting, as well as the approaches to the interpretation of the term innovation process. Results The proposed key requirements to the budgeting system of innovation-based entities will help take strategic and prompt management decisions to enhance efficient management of risks associated with innovation activities. Conclusions and Relevance The requirements are fundamental for budgeting systems of innovation entities. They should be considered in developing the corporate budgeting concept and its further implementation. The outcome of the research may be used by industrial entities in forming budgets of innovation projects to make forecasts more precise and prevent possible cash deficit.
Keywords: budgeting, planning, risks, innovation, corporate budget, financial control
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